Colombia's Congress gears up for 2027 budget debate and sweeping tax reform

The newly installed Colombian Congress will convene on 20 July to begin a legislative session marked by an unusually large agenda. Over one hundred bills and initiatives are slated for the first weeks, covering tax reform, institutional changes, youth representation and proposals for a constitutional assembly.

A central focus will be the discussion of the 2027 General Budget draft that the incoming Petro administration will present. Senator Carlos Meisel warned that past budgets have been “dis‑aligned with reality” and have contributed to a fiscal deficit estimated at 8 % of GDP. He called for major spending cuts and a tax overhaul that would incentivise investment, curb capital flight and broaden the tax base.

The Ministry of Finance’s tax reform aims to strengthen public finances and reduce the deficit, while other measures seek to increase youth seats in Congress and debate the feasibility of a national constituent assembly. The packed legislative slate comes as President Gustavo Petro’s term ends and the 2026 electoral campaign ramps up, meaning negotiations will be intense in a Congress without an absolute majority.